10/30/2026
Selling your house? The IRS cares less about your sale price than you'd think.
When you sell, you're taxed on your profit, not the price.
Your profit is your sale price, minus your selling costs, minus your cost basis.
Your basis is the running total of what you've put into the home. What you paid, certain closing costs, and every improvement, like a new roof or a kitchen remodel.
The higher your basis, the smaller your profit, and the smaller your tax bill.
If you bought recently, that total started on closing day. Fees like transfer taxes and title insurance count. Loan fees and points don't.
Keep your closing statement and every remodel receipt in one place for as long as you own the home.
Know someone who just closed on a house or is in the middle of a remodel? Send this to them.